Custom Search
Custom Search

Tuesday, December 8, 2020

Performance Appraisal and Performance Management


(Refer our High Quality Management Encyclopedia “Management Universe” at: https://management-universe.blogspot.com


Performance Management

(The book "Essentials of Performance Management and Performance Appraisal" is available online in its eBook version and in its printed version from Amazon) 

Integrated process for improving employee performance directed towards achieving organizational goals.
  • Integration of processes of setting goals, appraising the employees, training/developing them and rewarding.
  • It is a unified HRM approach.
Why Performance Management?
  • Enhanced employee performance in the organizational context requires more organizational support in terms of goal setting systems, learning/training systems, appraisal systems and rewards systems in addition to mere self motivation of the employees. A well designed and well implemented performance management system fulfils these requirements.
  • In globally competitive environment there is a need for continuous improvement of the performance of the organization which in turn depends on the continuous improvement of the performance of the employees year after year. Performance management aims at that.
  • Performance management system makes performance appraisal more objective and useful otherwise, many a time, the traditional performance appraisal carried out in isolation may prove to be counterproductive.
  • Performance management focuses the efforts of the entire organization and particularly those of it's human resources to the ultimate goals of the organization.
Also refer: http://strategic-managing.blogspot.com/ (Strategic Management), http://goal-target-setting.blogspot.com/ (Goal/Target Setting) and http://training-function.blogspot.com/ (Training and Development)

Generic Performance Management Model

For achieving a complete integration, a generic performance management model is given below. However, every organization can customize it to its specific objectives and requirements.
The process steps are given in logical sequence:
  1. Mission
  2. Objectives
  3. Core competencies (of the organization)
  4. Critical success factors
  5. Key performance indicators
  6. Strategies
  7. Organizational structure
  8. Skills and competencies (required of individuals working for the organization)
  9. Position and job descriptions
  10. Objectives of each individual working for the organization
  11. Plans of action
  12. Achievement measurement
  13. Performance review
  14. Assessments of skill and competency gaps and gap analysis
  15. Individual development plans
  16. Training and other developmental initiatives like job rotation, job enrichment, transfers, task force assignments, foreign assignments etc
  17. Recognition and rewards
  18. Succession plans
Performance Appraisal or Performance Evaluation
  • Appraising the employees on how well they did in the past period, say for past six months to an year.
  • Appraising the employees for their potentials
Why Performance Appraisal?
  • Finding out the levels of performance of the employees and deciding and awarding appropriate motivational packages to the employees in terms of recognition, salary raise, promotion, special rewards, bonus, profit sharing, stock options etc
  • Finding out the competency gaps of the employees as compared to what competencies they should have. This helps in training and development needs identification.
  • Identifying the areas of weaknesses and strengths and working out appropriate interventions for the employees for their training and development.
  • Thus, helping in improvement of employees' effectiveness and efficiency.
  • Working out additional development interventions for employees like job rotation, job enrichment, transfers between various sites/offices, foreign assignments etc.
  • Chalking out the career progression of the employees based on the analysis of their past performance and future potentials.
Uses of Performance Appraisal/Evaluation in Other HRM and Organizational Functions
Many Appraisal Systems
  • Confidential reports by boss(es) or superior(s).
  • Appraisal by boss(es) or superior(s): not strictly confidential.
  • Appraisal by superior(s) and self: but appraiser and appraisee do not consult or discuss.
  • Appraisal by superior(s) and self (appraisee) followed by a discussion between superior and appraisee to arrive at a consensus on performance rating: open appraisal.
  • Appraisal by boss(es), self and one or two internal customers.
  • Appraisal as guided by MBO (Management by Objectives: result focus) by bosses, self and may be, by one or two internal customers.
  • Appraisal considering results and attributes, both by superiors, self and may be, by one or two internal customers.
  • Appraisal considering results, attributes and competencies/skill sets (result focus as well as process focus) by superiors, self and may be by, one or two internal customers. Also refer: http://competency-matrix.blogspot.com/ (Competency Matrix). You may also like to read at URLs: (Competencies- Life Management) http://shyam-bhatawdekar.blogspot.com/
  • Three sixty degrees performance appraisal (by superiors, self, peers, direct reports, internal customers and external customers).
  • Three sixty degrees performance appraisal and leadership development (by superiors, self, peers, direct reports internal customers and external customers).
  • 720 degrees performance appraisal: evaluation of a manager/employee is done through detailed personal interviews with performance evaluators. It concentrates on what matters most to the organization. For example, the customers' or clients' views on employee's performance may be most important to the organization.
Pitfalls in Performance Appraisals in Practice
  • Lack or absence of objectivity or increased subjectivity
  • Unclear standards
  • Central tendency
  • Lenient attitude of the evaluator(s)
  • Strict attitude of the evaluator(s)
  • Bias
  • Halo effects
  • Horn effects
  • Disproportionate impact of recent events on evaluation
  • Employee resistance
  • Lack of employee's trust in the appraisal system
Superior Most Systems
Anti Views on Performance Appraisal (Mainly Based on Opinions of Peter Scholtes and Edward Deming)
  • Data and research are not available to show that performance appraisal does any good. There is no evidence to indicate that a company which uses performance appraisal does any better than it would if it did not use performance appraisal.
  • It is reported that, when quality guru Edwards Deming was asked what to do about performance appraisals, he replied ‘whatever Peter Scholtes says.’
  • Performance appraisal and a number of other management interventions are based on a
    fairly cynical premise about people by those who manage. The view that gets reflected is: we would be okay if it weren't for the inadequacies of our individual employees.
  • As per Deming, systems are the cause of problems and the cause of solutions. If you want to improve what you are doing, you have to improve your systems. You should not think organizations as hierarchies (the conventional view). As per Scholtes, if you want to improve, what you do is to improve the system; you don't pester the people to work harder or work smarter. You don't threaten them with punishment or promise them rewards: that's looking in the wrong place.
  • Performance appraisal tends to undermine the system (process) by encouraging individuals to organize their performance often at the expense of the system.
  • Performance appraisal can undermine teams because many times, individuals want to look good at the expense of the team.
  • At times, performance appraisal make an employee totally boss oriented irrespective of the system (process) or team.
  • Performance appraisal is supposed to provide channels of communication and feedback to the employees but in real practice, that hardly happens.
  • So, what to do? If an organization has a performance appraisal system, should it just throw it out the window start working on the transition to systems thinking? “That's a pretty good start,” says Scholtes. “Most people hate performance appraisal, but they
    assume that's because they are not doing it the right way. There is no right way to do it: it's inherently the wrong thing to do.”
Books Authored by Shyam Bhatawdekar and Dr Kalpana Bhatawdekar (eBooks and printed books available online from  Amazon)

Management, Business, Self-help & Personality Development Books

1. HSoftware (Human Software) (The Only Key to Higher Effectiveness)
2. Sensitive Stories of Corporate World (Management Case Studies)
3. Sensitive Stories of Corporate World (Management Case Studies) (volume 2)
4. Classic Management Games, Exercises, Energizers and Icebreakers
5. Classic Management Games, Exercises, Energizers and Icebreakers (Volume 2)
6. Classic Team Building Games, Exercises, Energizers and Icebreakers
7. 101 Classic Management Games, Exercises, Energizers and Icebreakers
8. 101 Classic Management Games, Exercises, Energizers and Icebreakers
9. Stress? No Way!! (Handbook on Stress Management)
10. HSoftware (Shyam Bhatawdekar’s Effectiveness Model)
11. Competency Management (Competency Matrix and Competencies)
12. Soft Skills You Can’t Do Without (Goal Setting, Time Management, Assertiveness and Anger Management)
13. Essentials of Work Study (Method Study and Work Measurement)
14. Essentials of Time Management (Taking Control of Your Life)
15. Essentials of 5S Housekeeping
16. Essentials of Quality Circles
17. Essentials of Goal Setting
18. Essentials of Anger Management
19. Essentials of Assertive Behavior
20. Essentials of Performance Management & Performance Appraisal
21. Essentials of Effective Communication
22. Health Essentials (Health Is Wealth)
23. The Romance of Intimacy (How to Enhance Intimacy in a Relationship?)

Novels, Stories, Biographies and Travelogues

24. The Peace Crusaders (Novel: thriller, mystery, adventure)
25. Love Knows No Bounds (Novel: a refreshingly different love story that discusses an important and topical societal issue. Also available with the title “Good People”)
26. The New World Order (Novel: socioeconomic, thriller, mystery, adventure)
27. Funny (and Not So Funny) Short Stories
28. Stories Children Will Love (Volume 1: Bhanu-Shanu-Kaju-Biju and Dholu Ram Gadbad Singh)
29. My Father (Biography)
30. Travelogue: Scandinavia, Russia
31. Travelogue: Europe
32. Travelogue: Central Europe
33. Travelogue: Egypt (Mysteries of Egypt)
34. सीमाओं के परे: (एक अलग प्रेम कहानी) (Novel in Hindi)
35. अमन के सिपाही (Novel in Hindi)
36. अभिजात प्रेम (एक वेगळी प्रेम कथा) (Novel in Marathi)
Posted by Prodcons Group at 12:21 AM

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)